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Using a minimum of technical language, react to the following statement: Because of the beneficial impact of diversification, prudent investors should evaluate a prospective investment

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Using a minimum of technical language, react to the following statement: Because of the beneficial impact of diversification, prudent investors should evaluate a prospective investment or liquidation of an existing investment based on the contribution of the transaction to portfolio risk. (In other words, prudent investors build portfolios). As a consequence, markets will only reward investors (consistently) based on their assumption of systematic risk. 7. Distinguish between the intrinsic value of a company's equity versus the current market value of the company's equity. Which should management focus most strongly on in order to achieve its financial mission of maximizing long term shareholder value? Why? 9. 10. Using the Price Data for Microsoft and the S&P 500 index, use excel to calculate the beta for Microsoft. You may use either the charting function of excel or the linear regression feature of the Data Analysis Pack or the @slope function in excel. Using a minimum of technical language, react to the following statement: Because of the beneficial impact of diversification, prudent investors should evaluate a prospective investment or liquidation of an existing investment based on the contribution of the transaction to portfolio risk. (In other words, prudent investors build portfolios). As a consequence, markets will only reward investors (consistently) based on their assumption of systematic risk. 7. Distinguish between the intrinsic value of a company's equity versus the current market value of the company's equity. Which should management focus most strongly on in order to achieve its financial mission of maximizing long term shareholder value? Why? 9. 10. Using the Price Data for Microsoft and the S&P 500 index, use excel to calculate the beta for Microsoft. You may use either the charting function of excel or the linear regression feature of the Data Analysis Pack or the @slope function in excel

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